The Survive and Thrive Boomer Guide

Skip illegal ‘Secret Sister’ gift exchanges

The online “Secret Sister” gift exchange and similar invitations are illegal and should be ignored, the Better Business Bureau warns. The campaign, which made a big splash in 2015, is again being circulated on social media sites, especially Facebook. 

The post claims that participants will receive up to 36 gifts in exchange for sending one gift valued at $10. Users are encouraged to invite others to participate in the holiday gift exchange, where they’ll receive information on where to mail gifts. 

However, there’s a big problem with gift chains such “Secret Sister” – they’re pyramid schemes. Gift exchanges are illegal gambling and participants could be subject to penalties for mail fraud, according to the U.S. Postal Inspection Services. Pyramid schemes are illegal, either by mail or on social media, if money or other items of value are requested with assurance of a sizeable return for those who participate.

New York sues Exxon Mobile for misleading investors on climate change costs

 

Photo: Ben P L

Exxon Mobile Corp. is being sued by the state of New York for allegedly misleading investors on the risk that climate change regulations posed to its finances.

For years, Exxon told investors that it was accounting for the likelihood of stronger regulation by applying an increasing cost of emissions to its business planning and investment decisions, according to the lawsuit. However, Exxon did less than it claimed, deceiving investors on the company’s true financial exposure to climate change regulations.

Exxon marketed the company as a secure long-term investment and sought long-term investors such as life insurance companies and pension funds.

How to file claims for damage from Hurricane Michael

Hurricane Michael damage is expected to be $5 billion from wind damage and $3 billion from flood damage.

Only about one in three families who have flood damage from Hurricane Michael have federal flood insurance. Most homes have homeowners policies covering wind damage, but insurers have been steadily increasing hurricane wind coverage deductibles and imposing other homeowners insurance policy limitations, according to the Consumer Federation of America.

Because so many consumers experienced severe claims problems after Hurricane Katrina and Superstorm Sandy, the federation urges homeowners dealing with losses caused by Hurricane Michael to be vigilant with their insurance companies, including the insurers settling National Flood Insurance claims, to ensure that they receive a full and fair settlement.

Trump administration stalled in its efforts to eliminate protections for student loan borrowers

The U.S. Department of Education will miss a November deadline to repeal the Obama-era revisions that help student loan borrowers for the 2019 school year. The rule erases the federal student debt of borrowers defrauded by colleges.

Adopted in the 1990s, the rule cancels federal loans for students whose colleges used deceptive or illegal tactics to encourage them to get loans to attend.

The Obama administration revisions streamlined the claims process and shifted more of the cost to schools for discharging loans. The changes were scheduled to take effect in July, but the department postponed them for a year and said it would appointment a new rulemaking committee to rewrite the entire regulation. Education Secretary Betsy DeVos wanted more time for the committee work on its revisions.

Operators of debt relief companies agree to settle FTC charges

Five operators of a student loan debt relief scam have agreed to settle Federal Trade Commission charges that they bilked millions from consumers by falsely claiming to enroll consumers in loan forgiveness programs, costing up to $1,000 in illegal upfront fees.

The settlements are with the following individual defendants and their companies:

• Benjamin Naderi, Alliance Document Preparation
• Shawn Gabbaie, SBB Holdings
• Avinidav Rubeni, United Legal Center
• Ramiar Reuveni, Grads Doc Prep
• Farzan Azinkhan
• Michael Ratliff

The commission obtained default judgments against two more corporate defendants, Elite Doc Prep and Elite Consulting Service.

Robocaller to pay $82 million for illegally-spoofed health insurance marketing calls

The Federal Communications Commission fined telemarketer Philip Roesel and his companies Wednesday more than $82 million for illegal caller ID spoofing. Roesel made more than 21 million robocalls to market health insurance. Federal law prohibits callers from falsifying caller ID information to disguise their identity to d

The FCC proposed this fine in the summer of 2017. In response, Roesel said that the commission failed to prove its charges. The commission determined that the evidence didn’t support his claims and is imposing the original fine, one of the largest imposed by the agency.

Roesel, doing business as Wilmington Insurance Quotes, or through his company, Best Insurance Contracts Inc., made millions of spoofed robocalls. He sold health insurance and wanted to get leads for more sales. By spoofing his caller ID information, Roesel made it difficult for consumers to make complaints and for law enforcement to track and stop the illegal calls.

Copyright 2018, Rita R. Robison, Consumer Specialist

Attack on Facebook exposes 50 million users’ accounts

Facebook announced Friday that earlier this week, "attackers exploited a vulnerability in Facebook’s code that impacted ‘View As,’” a feature that lets people see what their own profile looks like to someone else. This allowed them to steal Facebook access tokens which they could then use to take over people’s accounts."

Ed Mierzwinski, the senior director of U.S. PIRG's consumer program, said:

Early reports of yet another big breach, this one where hackers apparently exploited Facebook vulnerabilities to expose the data of 50 million users, are very troubling. It's yet another warning that Congress must not enact any national data security or data breach legislation that weakens current state privacy laws, preempts the rights of states to pass new laws that protect their consumers better, or denies their attorneys general rights to investigate violations of or enforce those laws.

Copyright 2018, Rita R. Robison, Consumer Specialist

Uber to pay a record $148 million settlement for not disclosing 2016 data breach

Uber settled charges Wednesday it concealed a 2016 data breach in violation of notification laws. The settlement, which was reached with 50 states and the District of Columbia, requires Uber to adopt data breach notification and data security practices and have its data security reviewed by an outside company. Uber also is required to pay a record $148 million penalty.

“New Yorkers deserve to know that their personal information will be protected – period,” said New York Attorney General Barbara D. Underwood. “This record settlement should send a clear message: we have zero tolerance for those who skirt the law and leave consumer and employee information vulnerable to exploitation.”

In November 2016, hackers based in the United States and Canada secretly informed security officials at Uber that they’d downloaded the personal information of 57 million riders and drivers, 25 million in the United States and 7.7 million drivers. The information stolen included names, email addresses, and mobile phone numbers; drivers’ license information on about 600,000 drivers nationwide was also stolen. After providing proof of the massive data breach, the hackers demanded “six figures” to delete the data and not disclose the breach. Uber paid the hackers $100,000 to conceal the breach.

Manafort, guilty – Cohen, guilty: What’s next?

Paul Manafort                        Michael Cohen

Photo: Voice of America        Photo: IowaPolitics.com

If you’re a regular reader of my blog, you know that I’ve written dozens of articles about how the Trump administration is slashing environmental and consumer laws and regulations as fast as it can.

To me, yesterday was a great day in terms of beginning to get some answers about the crimes being committed by members of Trump’s inner circle and, perhaps, the president himself.

Paul Manafort, 69, Trump's former campaign chairman, was found guilty Tuesday by a jury on eight counts of financial crimes. The eight counts included five tax fraud charges, one charge of hiding foreign bank accounts, and two counts of bank fraud.

Michael Cohen, 51, former longtime Trump attorney, pleaded guilty Tuesday to eight felony charges of tax fraud, bank fraud, and campaign finance violations. Cohen said he coordinated with Trump to illegally payoff two women to keep them quiet about alleged affairs with Trump.

At last, we’re beginning to get some answers on what officials in the Trump administration were up to. Cohen pointing to Trump about a campaign violation is particularly illuminating.

What’s next?

29 attorneys general file comments with FTC on role of states in consumer protection

Twenty-nine  attorneys general filed comments with the Federal Trade Commission on the significant role state attorneys general play in consumer protection, and asked the FTC to include states in the discussion as the agency holds public hearings on “Competition and Consumer Protection in the 21^st Century.”

In June, the FTC announced it would offer public hearings “on whether broad-based changes in the economy, evolving business practices, new technologies, or international developments might require adjustments to competition and consumer protection enforcement law, enforcement priorities, and policy.” The FTC asked comments by August 20.

“State Attorneys General are a critical line of defense, protecting consumers against the kinds of unfair and deceptive practices that are far too prevalent,” said  New York Attorney General Barbara D. Underwood. “At a time when consumers’ privacy, data, and security are often treated as commodities rather than sensitive information, this role is more vital than ever.”